Holiday pay and overtime

Muscle750

Ive been advised that it is now legislation that Holiday pay for one week has to be a average of the last 6 weeks renumeration is this correct. Its just that im off for two weeks in August and have worked 60 hours plus a week since last year and flat money isnt going to be welcome. Ive worked for same company over 20 years

bugslet

It's 12 weeks average and unless there's been some more recent legislation that I'm unaware of, it isn't law but there have been a couple of cases that have found that holiday pay should be paid as an average of the previous 12 weeks.

sangie595

Muscle750 wrote: »

Ive been advised that it is now legislation that Holiday pay for one week has to be a average of the last 6 weeks renumeration is this correct. Its just that im off for two weeks in August and have worked 60 hours plus a week since last year and flat money isnt going to be welcome. Ive worked for same company over 20 years

If the overtime is voluntary, then your holiday pay is based on your basic wage without the overtime. The averaging of wages only applies to variable income, or, if the case in question is used, only for compulsory overtime.

RichardD1970

We've just had a back payment for holiday pay. This is for 2016, we had one for 2015 a few months ago.

The letter states,

"Following changes in the law in Nov 2014 in relation to overtime and holiday pay, a review of overtime worked in 2016 has been completed and you are eligible for back payment of holiday pay.

It is not possible for the Company to provide a breakdown of each individual calculation. The high level explanation is that the back-payment calculation has taken into consideration a proportion for all the overtime worked in 2016."

It goes on to say,

"Holiday pay from 1/1/17 onwards is not based on a proportionate calculation of overtime worked but will be calculated based on your average pay including the average of all overtime you have worked in the prior 12 weeks (EU holiday entitlement only, 20 days for a full time employee).

Systems are being updated bla bla bla, therefore you may be entitled to further arrears back payments in early 2018."

This is a very large multinational company so I would assume that the HR department have access to good legal advice regarding this sort of thing and I doubt that they are just being generous by including all overtime. :rotfl: